Barber, Cupcake Baker, Soy Latte Maker

Self-published

Barber, Cupcake Baker, Soy Latte Maker

DESPITE RECENT HIGH STREET CLOSURES, NUMBER OF INDEPENDENT RETAILERS SET TO REMAIN STABLE (INCREASING BY 0.3%) IN COMING YEARS AS CHANGING CONSUMER DEMANDS RESHAPE BRITISH HIGH STREETS, AMERICAN EXPRESS FINDS

  • Modern consumers are prompting a reshaping of the high street as outlets open to fill gaps left by online shopping
  • American Express research ahead of Small Business Saturday finds the independent retail sector is set to remain stable over the period 2017-2023, experiencing net growth of 0.3%
  • Analysis by forecasters at GlobalData¹ has predicted growth will be driven by sectors including entertainment services (17%), hair and beauty (16%) and health and fitness (15%)²
November 8, 2018
LONDON

Research by the American Express Shop Small campaign – which aims to encourage the nation to support their local independent retailers and shop small – has found that the number of independent retailers in Great Britain is set to experience net growth of 0.3% over the period 2017-2023.

The research, which was carried out by retail experts at GlobalData, found that the changing demands of modern consumers are reshaping the British high streets, where more independent outlets are set to open than close their doors. Set against the backdrop of current challenges faced by the high street and a series of high profile closures, even such modest growth is encouraging news for independent retailers.

Noticeably, sectors showing growth are those that are being established to serve the needs of consumers who are increasingly concerned about their wellness, provide opportunities to socialise as well as shop, and offer experiences that can’t be replicated online, the research found.

WHERE THE GROWTH IS COMING FROM
Growth is predominantly being driven across three key sectors. Independents offering entertainment services like cinemas and escape rooms are set to grow by 17% in the period to 2023, while hair and beauty overall is predicted to see an increase of 16%, and the health and fitness sector follows not far behind (15%).

The study commissioned by American Express also identified ten key categories that are expected to show significant growth. Escape rooms are anticipated to experience net growth of 81%, representing an experience-based category which burst onto the leisure scene in recent years and is set to increase in popularity. The overall growth of hair and beauty means the sector boasts four of the fastest growing categories, with barbers (22%), beauty salons (24%), hairdressers (13%) and tattooing and piercing (20%) all set for a boost.

TEN OF THE FASTEST-GROWING HIGH STREET CATEGORIES AMONG INDEPENDENT BUSINESSES

CATEGORY

FORECAST GROWTH IN RETAIL UNIT OPENINGS TO 2023

Escape rooms

81%

Toys and games retailers

37%

Beauty/nail salons

24%

Barbers

22%

Tattooing and piercing

20%

Chemists/cosmetics retailers

18%

Gyms and fitness facilities

15%

Electricals retailers

15%

Hairdressers/hair salons

13%

Coffee and tea shops

13%

 

THE CHANGING DEMANDS OF THE CONSUMER
As part of the research, GlobalData polled 2,250 consumers³ to uncover the motivations behind the changes on the high street. The findings confirmed that for almost two thirds of shoppers (62%), the desire for experiences and opportunity to buy things that couldn’t be easily sourced online were cited as important reasons for visiting independents on their local high street.

Maureen Hinton, Global Retail Research Director at GlobalData, has commented on the findings:

“What’s encouraging about this research is that it shows modern high streets are evolving to keep pace with consumer demands.

“The growth of online has also made the high street’s role as a service-led, social space increasingly important, encouraging the rise of hybrid businesses, with shops, gyms and cinemas now often boasting their own bars, coffee shops and restaurants.

“Meanwhile, new categories of business continue to emerge, such as “experience bars”, which combine a night out, with a complete entertainment experience, centred on an activity, such as darts, mini golf or table tennis. There is no doubt that the high street is in a period of unprecedented change, but the rise of new businesses such as these, demonstrates that this is as much an opportunity as a challenge.”

The American Express Shop Small research comes ahead of Small Business Saturday, which takes place on 1 December this year.

The day, founded by American Express and of which it is principal supporter, is a grassroots, campaign, which highlights small business success and encourages consumers to support their local independents. American Express is incentivising its Cardmembers to shop small this festive season with a £5 statement credit when they spend £10 or more at participating small businesses between 1st – 16th December 2018.

Caroline Bouvet, VP, American Express, said:

“Small businesses play a vital role within their local communities and their agile nature ensures they are able to adapt and respond to changing consumer demand. We have a long history of working with small businesses and hope the rest of the country joins us in showing appreciation for them by shopping small this Small Business Saturday.”

NOTES TO EDITOR
¹ All research conducted by retail experts GlobalData, who analysed retail figures from the Office of National Statistics (ONS), as well as a variety of publicly available secondary sources, such as the Local Data Company (LDC), the National Hairdressing Federation (NHF), Leisure DB and the UK Cinema Association as reference points, and drawing on existing retailer, consumer and market data where relevant. Predictions were made using projection modelling to derive robust forecasts. All data analysed focused solely on independent retailers.

² Definitions:

Entertainment services: includes cinemas, escape rooms, and other amusement or recreational activities, such as bingo halls, ice rinks, bowling alleys etc.

Hair and beauty: includes hairdressers/salons, barbers, beauty salons, nail salons, tattooing and piercing and tanning shops/salons

Health and fitness: includes gyms, health clubs, leisure centres and fitness studios

³ Consumer research undertaken by GlobalData in October 2018, surveying 2,250 consumers from an established nationally representative panel to provide additional insight into consumer behaviour 

To find out more about Small Business Saturday and the American Express Shop Small campaign, please visit:

www.smallbusinesssaturdayuk.com

www.amexshopsmall.co.uk

Multimedia Files:

Preview image

Media Contact

AMERICAN EXPRESS
Anne Tyrer
+44 (0)1273-210217
Anne.E.Tyrer@aexp.com

HOPE&GLORY PR
Jen Murdoch
+44 (0)203-588-9700
Amex@hopeandglorypr.com

About American Express

American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com, and connect with us on facebook.com/americanexpress, instagram.com/americanexpress, Linkedin.com/company/american-express, twitter.com/americanexpress, and youtube.com/americanexpress.

Get alerts delivered to your inbox.

Sign Up
Business Wire NewsHQsm